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Construction Project Controls

Construction project controls are the mechanisms used by construction contractors to ensure that their costs do not overrun the estimate they have given to a property owner at the start of a project. Without construction project controls--or if the construction project controls are ignored--a project can be far more expensive than originally estimated, causing significant problems between the contractor and owner.

Construction project controls for a project are overseen by the project manager, though they are usually assisted by an accountant or other designated professional. A construction project controls system is usually put into place, allowing the manager to observe current cost levels, see where costs should have been at that time in comparison to the estimate, and allow the manager to make changes if necessary.

Traditionally, construction project controls have been monitored by hand, updated slowly as receipts and data from the job site filter back in to the office. This can lead to a potential disaster, as cost overruns may not be recognized until weeks or months after they occur. More recently, the creation of construction-related computer programs has helped to strengthen construction project controls. These programs can be updated much faster and can compare the schedule and actual costs to those estimated far more quickly, limiting the potential damage done.

One of the most advanced construction project controls systems on the market today is the new Building Information Modeling (BIM) program. BIM provides a complete overview of the entire project in a single program, including a three dimensional design of the project. With BIM, the contractor can not only see what the project is supposed to look like, he can ensure that the schedule is being properly followed and that construction work that might conflict with each other (putting in drywall before the wiring is installed, for instance) does not occur. But BIM also monitors the amount of material on hand, construction costs and scheduling. It provides a more complete, immediate set of construction project controls to ensure the project remains not only on time, but within budget as well.

Most construction cost control systems have an inordinately long response time. Even the best cost control system would provide information on what was happening last week or last month. Since, in construction projects some activities might finish in a week or a month, then nothing could be done if the performance of such activities was reported to overrun estimates of respective costs.

. Developments in Cost Control Systems

There are three developments in construction management which show promise of improving cost control system in the construction industry

1. Short term scheduling and control.

This system was developed at Loughborough University in association with a contractor. It aims to merger the planning and supervision and hence to obtain a more or less zero response time.

. 2. Project Cost model.

This a system developed by Dr Martin Barnes for simulating future actions and thus guiding the manager in his choice between them

. 3. Quantitative scheduling

One of the unique Construction Software that provides a futuristic construction cost control tool for construction management is the CFF3 for cash flow forecasting. Version three has taken into consideration the possible deviations from estimates of cost as well as cash in patterns and provided a means to return back to the original estimate by damping out these deviations through the remaining period of construction. Updated estimates are provided each time an actual figure is added such that the end cost remain same as was originally estimated. It provides an excellent guide for managers through the construction project to capture the best possible actions in each period activities. Labor rate and efficiency constitute the core of Quantitative Scheduling which is highly recommended if cost minimization in respect of productivity rates is sought.

Also Construction Cost is directly related to Material price, Material usage and waste, Fixed and varied overhead expenditure. These are the areas where managers should seek action for future adjustments in order to get back to original estimate or practically as near as possible.

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